Evaluate Your Timeline

Assess where you are in the home-buying timeline. If you're about six months away from needing to move into a home, it's crucial to connect with a Realtor and a mortgage loan officer as soon as possible. Typically, the first step in this process is finding a Realtor to represent you. A good Realtor will usually provide you with a list of trusted loan officers for obtaining quotes.

Start with a Soft Prequalification

We recommend obtaining a "soft" prequalification from one lender about six months before you plan to purchase a home. A soft prequalification typically involves filling out an online application and providing estimates without the need for hard documentation (such as employment contracts, exact salary figures, or bank statements). The lender will also conduct a credit pull.

There are two key reasons to pursue this step:

1. Fraud Detection: Checking your credit early can help you identify any potential fraudulent activity.

2. Credit Score Monitoring: While a credit inquiry may affect your score by about 5-10 points, it’s usually minimal. By the time you’re ready for a re-pull in about three months, your score should have recovered.

By taking these steps early, you’ll avoid the headache of being unable to purchase a home due to unexpected credit issues. Many credit problems can take six months or more to resolve, which is why early assessment is essential.

Understand Prequalification and Your Options

Getting prequalified for a loan doesn’t commit you to that lender. In fact, even after you lock in a loan, you can back out before signing the final mortgage papers if necessary. To keep your personal information secure, we recommend obtaining a soft prequalification from just one lender. Be sure to ask for your “qualifying score,” which you can use to compare quotes from other lenders.

It's important to note that you don’t need to complete a full loan application at every lender to get quotes. Always aim to obtain at least three mortgage quotes to ensure you have a comprehensive view of your options. This way, you can make a well-informed decision that suits your financial needs.